Description
Crypton electronic has a capital structure consisting of 42% common
stock and 58% debt. A debt issue of $1000 par value, 5.7% bonds that
mature in 15 years and pay annual interest will sell for 973. Common
stock of the firm. Is currently selling for 30.43 per share and the firm
expect to pay$2.25 dividend next year. Dividends have grown at the rate
of 5.1% per year and are expect to continue to do so for the
foreseeable future. What is Cryton’s cost of capital where the firm’s
tax rate is 30%? What is Crypton’s cost of the capital? ( round to three
decimal places)
stock and 58% debt. A debt issue of $1000 par value, 5.7% bonds that
mature in 15 years and pay annual interest will sell for 973. Common
stock of the firm. Is currently selling for 30.43 per share and the firm
expect to pay$2.25 dividend next year. Dividends have grown at the rate
of 5.1% per year and are expect to continue to do so for the
foreseeable future. What is Cryton’s cost of capital where the firm’s
tax rate is 30%? What is Crypton’s cost of the capital? ( round to three
decimal places)
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